Engro Fertilizers posts 57% YoY Profit Increase for 9M2023

Engro Fertilizers Limited (EFERT) reported a profit after tax (PAT) of PKR 15.045 billion for the first nine months of 2023, marking a 57% year-over-year (YoY) increase compared to PKR 9.595 billion earned in the same period last year. The financial results were disclosed on the Pakistan Stock Exchange on October 12.

In addition to the earnings report, EFERT announced a cash dividend of PKR 6.00 per share, down from PKR 12.50 per share in the same period of the previous year.

According to an analysis by IMS Research, a Pakistan-based research house, EFERT’s net sales for the first nine months of 2023 stood at PKR 148.531 billion, a YoY growth of 34%. This improvement is attributed to a 13% YoY increase in urea sales, coupled with a 45% hike in urea prices. Diammonium phosphate (DAP) sales remained stable during the period.

The company also saw a 46% YoY increase in other income, which totaled PKR 1.901 billion, driven by higher income from cash and cash balances. Finance costs remained stable, registering at PKR 1.637 billion.

Engro Fertilizers Limited is an 86%-owned subsidiary of Engro Corporation. It is Pakistan’s largest producer of urea, with Engro Urea as the nation’s oldest domestic brand of fertilizer. The company has continuously expanded its production capacity from an initial 173,000 metric tonnes to its current capacity of 975,000 metric tonnes. In 2010, EFERT added another 1.3 million metric tonnes of production capacity with the completion of the EnVen project, making its Daharki site in Sindh Province the world’s fifth-largest urea production facility.

The financial performance of EFERT indicates a generally positive outlook for the fertilizer sector in Pakistan, aided by stronger commodity prices and sustained demand for urea.

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